Things to Consider When Selling Your Home

Your home's market value.

Determining the right sales price for your home is essential. Pricing your home too high could limit the number of buyers that tour your home. Price your home too low, and you may be leaving money on the closing table.

Establishing the best sales price begins with understanding market conditions and how your home compares with similar active and sold homes.

Search all recently sold, pending & active homes for sale in your neighborhood.

Things to Consider:

How does your home compare to similar homes, e.g., square footage, bedrooms, features, etc.?
How will your sales price compare to recently sold homes?
How will your sales price compare to active homes on the market?
What is the average number of days on the market?
How many months of inventory is on the market?

Making repairs to your home.

Prioritize home repairs that are most important. If you're not sure where to begin, start with repairs that positively affect your home's value with potential buyers, such as kitchen and bathroom improvements.

Once the buyer's home inspection is complete, it's not uncommon to negotiate repairs (especially when represented by a Realtor®) during the buyer's due diligence option period. Additionally, certain repairs may be required by an appraisal for the buyer to be approved for a mortgage loan.

Things to Consider:

Which repairs are most likely to increase your home's market value?
Which repairs may be required on home appraisal?
Which repairs might the buyer ask for during negotiations?

Marketing your home.

Selling your home quickly, for the highest price begins with reaching as many potential home buyers as possible. Yard signs are okay for buyers that to happen drive by your home, however the vast majority of buyers conduct their home search on the internet. The best possible exposure for your home is to be listed on all major home search websites.

Also consider how you can protect your personal information from spammers whenever possible.

Things to Consider:

Where will you advertise your home to reach the maximum number of buyers?
What costs are involved?
How will you safeguard your personal info?

Buyers touring your home.

Potential buyers will want tour your home, to see if it's right for them. If the buyer is represented by a Realtor®, they will expect to tour the home without the seller being present. It's also good to get buyer feedback. Understanding what buyers like and dislike about your home allows you the opportunity to make adjustments and improve future showings.

Things to Consider:

How will buyers or Realtors® schedule home tours?
How will buyers or Realtors® securely access your home?
How will you get buyer feedback to improve future home tours?

Contracting to purchase your home.

When the buyer is represented by a Realtor® the offer will be presented on the Georgia Realtors® purchase and sale agreement. Otherwise, the buyer & seller should consider hiring an attorney to draft the contract.

The contract would be based upon pre-negotiated terms agreed to by both parties. Costs may range from $800-$1,000 or more per contract, regardless of whether or not the home buyer closes on the home.

Things to Consider:

Do you have clear understanding of the Realtor® purchase and sale agreement & exhibits?
Do you need to consult an attorney to interpret the Realtor® purchase and sale agreement?
Do you need to consult an attorney to write the contract?
Who will pay to write the contract?
How will you negotiate contract terms with the buyer or their Realtor®?

Buyer's closing costs & seller's contribution.

Home buyers often try to negotiate closing costs as part of their offer. In some instances, the buyer may need closing costs to purchase the home. The buyer may also need extra money to 'buy down' loan points, so they can afford the monthly mortgage payment.

Depending on the type of home loan, there are limitations on amounts the seller can contribute:

3% for FHA loans
4% for VA loans
3-6% for Conventional loans (depending on the buyer's downpayment amount)

Things to Consider:

How much are you willing to contribute to the buyer's closing costs, if any?
How can you determine if the buyer actually needs closing costs to buy the home?
Does the amount requested by the buyer exceed what's allowed?

Understanding earnest money.

Earnest money is offered by buyers as 'good faith' of their intention to purchase the home. Although it's not a legal requirement in Georgia, it's common practice. There is no set amount for earnest money, it can be any amount negotiated between the buyer and Seller. If a real estate broker holds earnest money it must be deposited in a designated trust account.

Things to Consider:

How much earnest money will you require?
How will earnest money be disbursed if the buyer defaults?
Who will hold the earnest money?

Understanding the buyer's due diligence & financing contingency periods.

The due diligence option period is the home buyer's opportunity to examine the home, assess the home's condition, and decide whether or not to proceed with the purchase. If the buyer is denied financing by the approved lender, notice should be given to the seller during the financing contingency period.

When represented by a Realtor® the buyer's offer will likely be contingent on due diligence and financing periods. Home buyers may have the right to unilaterally terminate during these periods.

Things to Consider:

How many days are you comfortable with for the due diligence period?
How many days are you comfortable with for financing contingency period?
How many days are fair & reasonable for both parties?
How can you protect your interests during the contingency periods?
How does the contract address disbursement of earnest money if the buyer defaults?

Understanding the buyer's amendatory clause rights.

When buyers finance with either an FHA or VA loan, a qualified appraiser determines the home's reasonable value by completing an FHA or VA appraisal. The home buyer's loan amount cannot exceed the appraised value. If the loan amount does exceed the appraised value, buyers have options:

Negotiate the price. Buyer can attempt to renegotiate the lower purchase price with the seller.

Pay the difference. Buyer can chose to pay the difference in cash, at the closing.

Terminate. Buyer can terminate the purchase agreement, without penalty (earnest money is returned to the buyer).

Things to Consider:

Will your home appraise at value (sales price)?
How will you renegotiate terms with the buyer or their Realtor® (if the appraisal is lower than the sales price)?

Condominium financing.

If the home buyer is financing the purchase of a condo with an FHA or VA loan, the condo association must have previously applied and be granted approval for FHA or VA financing. Otherwise, the home buyer won't have the option to utilize these methods of financing.

Things to Consider: